At the ongoing Karnataka Global Investors Meet, the Karnataka state government introduced a new Clean Mobility Policy to accelerate the adoption and manufacturing of electric vehicles (EVs). The policy is designed to make Karnataka a global hub for clean mobility, with a vision to create 1 lakh jobs and attract Rs 50,000 crore in investments by 2030.

According to the policy document, Karnataka aims to position itself as the leading destination for clean mobility vehicle manufacturing. The government plans to leverage the state’s strategic advantages while developing a skilled workforce to foster sustainable growth. The objective is to build a comprehensive clean mobility ecosystem, enhancing production, technology, and EV adoption.

Key Objectives and Infrastructure Plans

The policy outlines a plan to establish Karnataka as the top destination in Asia for clean mobility technology and production. It emphasises expanding the charging infrastructure network and developing hydrogen stations across the state.

To encourage the growth of the EV industry, the government will offer incentives and concessions for setting up manufacturing plants related to EVs and their components. Additionally, it plans to establish dedicated clean mobility clusters to streamline industry operations.

Incentives and Support for EV Manufacturers

The Karnataka government has pledged support for various aspects of EV manufacturing, including battery packs, motors, hydrogen tanks, power electronics, and charging infrastructure. It will also encourage the development of testing facilities, battery recycling, and research & development (R&D) in the sector.

Currently, the state has exempted tax payments on certain categories of EVs, such as e-rickshaws and e-carts, while larger private electric vehicles like cars and jeeps remain taxable.

Special Benefits for MSMEs

Micro, Small, and Medium Enterprises (MSMEs) in the EV sector will receive capital subsidies, stamp duty exemptions, registration charge waivers, reimbursement of land conversion fees, and exemption from electricity tariffs. The policy has also identified three EV clusters in Chikkaballapur, Dharwad, and Ramanagara to promote regional EV manufacturing.

Building on Past Success

This new policy builds on the Electric Vehicle and Energy Storage Policy of 2017, which helped Karnataka attract EV investments worth Rs 25,000 crore. The state currently ranks third in India in EV registrations, with over 2.5 lakh EVs on the road. Additionally, 5,403 charging stations have been installed by both public and private agencies, further strengthening Karnataka’s clean mobility infrastructure.

With this ambitious new policy, Karnataka aims to solidify its status as a leader in the electric vehicle revolution, setting a benchmark for sustainable and clean transportation across the country.